In December 2022, the Spanish government took a major step forward in advancing the country's tech sector by passing a new law that, among other things, introduces a visa for digital nomads, simplifies paperwork for startups, lowers taxes for businesses and entrepreneurs, and simplifies the process of starting a business.
In this blog post, we break down what the new digital nomad visa entails and all of its perks - from simplified processes to reduced taxes - that make it an attractive option for remote workers looking to experience life in Spain!
What's the purpose of the new law?
The Spanish government passed the new law with the intention of attracting international talent and skills in the digital and technology industries.
The law aims to simplify the process for startups to complete paperwork, reduce the tax burden on businesses and entrepreneurs, streamline the process of starting a business, and introduce a visa for digital nomads.
These measures are meant to encourage growth and development in these sectors and make Spain a more attractive destination for digital and technology professionals.
When was the new law passed?
The new law was approved by both the Congress and the Senate of Spain on December 23, 2022, with a majority vote.
What's the Spanish digital nomad visa?
The Spanish digital nomad visa is intended for non-resident individuals who want to work remotely while living in Spain. It streamlines the process for obtaining a visa and residence permit and allows individuals to stay in the country for up to 5 years.
Who can apply for Spain's digital nomad visa?
The Spanish digital nomad visa is open to individuals of any nationality, but it is primarily targeted towards non-EEA nationals (including British citizens) and Spaniards who have been living outside of Spain for at least 5 years.
Is there a tax advantage to getting the Spanish digital nomad visa?
Yes, one of the main incentives for obtaining the Spanish digital nomad visa is the reduced tax rate for non-resident income. Rather than paying the standard rate of 25%, holders of this visa would only be required to pay 15% for a period of up to four years.
Does the digital nomad visa allow for the inclusion of family members?
Yes, foreign individuals who are granted the Spanish digital nomad visa will have the option to include close family members, such as spouses and children, in the visa provisions.
Which family members can come to Spain with the digital nomad visa holder?
The digital nomad visa allows the holder to bring their spouse or partner and children under 18 to Spain.
If the holder wishes to bring children over the age of 18, they must prove that the children are financially dependent on the holder and don't have their own independent family.
If the holder wishes to bring their parents to Spain, they must prove that they provide for their parents.
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Is the new visa a better option than those currently available?
The current visa options for digital nomads in Spain are limited and have burdensome paperwork requirements. The new law has the potential to make living in Spain easier for many skilled individuals.
The new law will also benefit British nationals who wish to work remotely or as freelancers in Spain by making the process simpler and more streamlined.
What are the requirements for Spain's digital nomad visa?
Individuals from countries outside of the European Union (including the UK) may be eligible to apply for a digital nomad visa in Spain if they work for a company based outside of Spain and their work for Spanish companies does not exceed 20% of their total work.
To be eligible for the digital nomad visa in Spain, applicants must provide proof of the following:
- That they have worked remotely for at least one year.
- That their work can be done remotely.
- If they're under contract with a company, they must prove that they have had a professional relationship with the company for at least three months and that the company allows remote work.
- If they are freelancers, they must demonstrate that they work with at least one company outside of Spain and provide the terms and conditions of their remote work arrangement.
What is the minimum income requirement for the digital nomad visa in Spain?
The minimum income is likely to be between €2,000 and €3,000 per month.
Is it easier to apply for the digital nomad visa from Spain or from outside Spain?
The process of applying for a digital nomad visa may be easier and more cost-effective if done while in Spain.
However, it is also possible to apply for this visa at a Spanish consulate in your home country.
Is it advisable to travel to Spain on a 90-day Schengen visa to apply for the digital nomad visa?
Yes. In this way, the process could be easier and cheaper.
Is it possible to apply for the digital nomad visa while already in Spain and holding a different type of visa?
Yes, as long as you meet all of the requirements for the digital nomad visa, you can apply for it regardless of your current visa status in Spain.
When will Spain officially launch the digital nomad visa?
Spain's digital nomad visa is expected to officially launch in January 2023.
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(Sources: CostaLuz Lawyers + Business Insider)